LG Chem, a leading South Korean chemical company, will invest $100 million in an automotive battery anode material project in Wuxi Hi-tech district.
A signing ceremony attended by Party secretary of Wuxi, Li Xiaomin, and by LG Chem chairman, Park Jin-Soo, took place in the city on May 8. The project is also supported by Huayou Cobalt Company from Zhejiang province.
Li Xiaomin regards the project as hugely important to Wuxi and pointed to three main aspects of the cooperative deal.
First, Wuxi will maintain its focus on the development of new industries, including the new energy automobile industry.
Second, as one of the major subsidiaries of LG Group, LG Chem is a leader in the new energy vehicle power battery industry. Wuxi hi-tech district, having spent years developing its science and technology capabilities, will fully support the new project.
Third, LG Chem and Huayou Cobalt Company will offer Wuxi Hi-tech district the chance to become a major Chinese production base for new energy vehicle power batteries.
Construction will begin in September 2018 and will be completed in 12 months, with the aim of finally releasing mass production units in May 2020, with an annual output value of 20 billion yuan ($3 billion).
Wuxi Hi-tech district is home to five leading South Korean enterprises, making it one of the most influential hotbeds of South Korean capital investment in East China.